Peeters, Marjan --- "The Enforcement of Greenhouse Gas Emissions Trading in Europe: Reliability Ensured?" [2011] ELECD 320; in Paddock, Lee; Qun, Du; Kotzé, J. Louis; Markell, L. David; Markowitz, J. Kenneth; Zaelke, Durwood (eds), "Compliance and Enforcement in Environmental Law" (Edward Elgar Publishing, 2011)

Book Title: Compliance and Enforcement in Environmental Law

Editor(s): Paddock, Lee; Qun, Du; Kotzé, J. Louis; Markell, L. David; Markowitz, J. Kenneth; Zaelke, Durwood

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848448315

Section: Chapter 16

Section Title: The Enforcement of Greenhouse Gas Emissions Trading in Europe: Reliability Ensured?

Author(s): Peeters, Marjan

Number of pages: 24

Extract:

16. The Enforcement of Greenhouse Gas
Emissions Trading in Europe:
Reliability Ensured?
Marjan Peeters*l

1. INTRODUCTION

One of the most remarkable developments in the field of environmental law has
been the evolution of emissions trading from a theoretical concept towards a
leading instrument for climate change mitigation policies. The inclusion in the
Kyoto Protocol of inter-state emissions trading and project-based crediting of
emissions reductions (Joint Implementation and the Clean Development
Mechanism) is indeed an important milestone for international environmental law.
In addition, the EU has established the largest domestic emissions trading scheme
for greenhouse gases worldwide, which went into effect on 1 January 2005?
Economic literature has widely recognized that emissions trading can be an
attractive regulatory approach for the reduction of polluting emissions, because it
is both effective and efficient? The instrument is especially recommended for
emissions with regional or global effects. For instance, the U.S. acid rain
emissions trading system, which has been in effect since 1995, has achieved the
environmental goal of emissions reductions in a cost-effective way.4
One of the core rules of an emissions trading scheme is that industries need to
cover their emissions with tradable emission rights. 5 This obligation, combined
with a maximum limit of tradable permits to be distributed among industries,
ensures the environmental integrity of the scheme. 6 The overall idea is that
emissions trading will lead to cost-effective emissions reductions, and will
stimulate technological innovation. 7
However, the price incentive also urges governments ...